London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Capital Gains Tax - Commercial property

The Chancellor’s announcement of the new “Entrepreneurs’ Relief” from 6 April 2008 appears to herald a marked change in the tax position of owners of commercial property.

Though the details have yet to be formalised, it seems that unless the property is let to the owner’s business – or to a company in which the owner has at least a 5% shareholding – the minimum tax rate on selling that property will increase to 18%.

Since 2000, anyone owning a commercial property used by an unquoted trading company would qualify for the higher rate of taper relief and could potentially pay only 10% capital gains tax on selling the property after two years.

It seems unlikely that this change will create a false market in such property before 6 April 2008 but there may be steps that can be taken to negate some of the impact of this effective tax increase in the time available.

If you would like to discuss what might be possible, please contact Cathy Corns or me.



Date: 29th January, 2008
Author: David Mansell


Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.


Congratulations to @FairstoneNI and @mercerhole from @MoneyMgmtMag and @FTA_Advantage #MMFPAwards

Good luck to Michael Lapham at the #MMFPAwards and everyone who has been shortlisted for an award #FinancialPlanning #Retirement



For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn